Milk pro­ces­sors across the EU an­nounce fur­ther price cuts

Irish Examiner - Farming - - NEWS - Stephen Cado­gan

Lead­ing EU milk pro­ces­sors have an­nounced fur­ther milk price re­duc­tions.

Arla in Den­mark will cut by €2.50 per 100kg for March milk and by a fur­ther €0.20 in April. Across March and April, Fries land Camp in a in the Nether­lands will cut prices by €0.30, and Dairy Crest in the UK will re­duce their milk price by €2/100kg. Saven­cia in France will take €1/100kg off the March price, and Royal A-ware in the Nether­lands will take 50c/ 100kg off.

Skim milk pow­der prices well be­low the in­ter­ven­tion level are ham­per­ing hopes of mar­ket re­cov­ery in the EU, and the cur­rent slow rate of SMP sales from in­ter­ven­tion is pre­dicted to af­fect the mar­ket into the long term. Ac­cord­ing to mar­ket sources, the Euro­pean Com­mis­sion is con­sid­er­ing a fixed price ten­der to en­cour­age traders to buy more of its 375,700 tonnes of in­ter­ven­tion SMP.

Glan­bia Ire­land CEO Jim Ber­gin has said fur­ther milk price re­duc­tions are in­evitable, after re­cent cuts in the Fe­bru­ary price.

He said Glan­bia Ire­land are hope­ful that the mar­ket tide may turn pos­i­tive again in the fourth quar­ter of 2018. IFA na­tional dairy com­mit­tee chair­man Tom Phe­lan said: “When set­ting the March milk price, co-ops can­not make the same mis­take as they did last month.” “The milk price de­ci­sions some co-ops took for Fe­bru­ary milk have shown just how out of touch they are with the mas­sive chal­lenges to their eco­nomic sus­tain­abil­ity that sup­pli­ers have been ex­pe­ri­enc­ing for the last num­ber of months.”

“At our meet­ing last week, mem­bers of the IF A dairy com­mit­tee were very clear that, while mar­ket re­turns con­tinue to be chal­leng­ing in this early part of the sea­son, co-ops need to in­vest in farm­ers to help them cope after a hor­ren­dously long win­ter, late spring and a hec­tic calv­ing sea­son made worse by atro­cious weather which left many ex­hausted and stressed. “Mem­bers from all re­gions have re­ported hav­ing to com­ple­ment feed at high cost to them­selves, as fod­der stores have been de­pleted after cows were brought in early last au­tumn and had to be kept in till late this spring. “De­spite this ad­di­tional feed­ing, pro­tein lev­els have plunged in March, ac­cord­ing to most co-ops. With­out any price cut at all, farm­ers will be look­ing at a de­pressed milk cheque for March.”

I CM SA pres­i­dent Pat McCor­mack said co-ops must hold the price of milk for March, and must not in­crease the price of feeds which dairy farm­ers now hugely de­pend on due to the fod­der cri­sis.

Pic­ture: De­nis Boyle

At last week’s open day on the farm of Grass10 young farmer of the year Timmy Crow­ley and his fam­ily, at Carey’s Cross, Ban­don, Co Cork, Irene Cul­li­nane, Goleen; Pat Le­hane, Dou­glas; Michael Kear­ney, Glan­mire; Dan and He­len Crow­ley; and Flor Rior­dan,...

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